FX.co ★ IMF raises 2017 growth forecast for Italy

The International Monetary Fund (IMF) has increased its forecast for Italy’s GDP growth in 2017 to 1.3% from 0.8%.

The fund said Italy’s moderate recovery continues for the third year in a row thanks to the government’s reforms, a loose monetary policy and low commodity prices.

However, the IMF added that the country’s economic growth will slow to 1% in 2018-2020.

It said the recovery will continue, though some risks persist, including political uncertainty, financial fragility, possible slowing of the reform process and risks linked to the normalization of monetary policy.

The fund also mentioned that major goals for Italy’s government include boosting the GDP growth, increasing economic resilience and strengthening social protection for the most vulnerable people. The IMF also sees the need for additional measures to reduce the gap in the competitiveness of Italy with other countries in the euro area.